First Half of 2018 Marked by High Sales Growth, Team Buildout, Strong
Community Support for XYO Network Blockchain Platform

October 05, 2018 09:00 AM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--XY –The Findables Company, a leading device tracking company and
developer of the XYO
Network, the technology bringing blockchain to the real world, today
reported financial results for the first half of the year, ending June
30, 2018.

Revenue for the first six months of 2018 was approximately $15 million,
as compared with approximately $442,000 for the same six-month period
the prior year. Stronger U.S. and global product demand contributed to
the growth.

The company’s investment in Research and Development over the first six
months of 2018 increased to $249,000, or 153% greater than the prior
year level over the same period. The additional investment was focused
on building out infrastructure and applications to support the XYO
Network.

Report Highlights:

The first half of 2018 was defined by high sales growth and continued
development of the XYO Network blockchain platform

Sales for the six-month period ending June 30, 2018 were $15.0
million, up $14.6 million, on a year-over-year basis

Approximately $13 million in sales were attributable to the pre-sale
and main sale of XYO tokens

Net Income increased $7.6 million year-over-year, up from a loss of $2
million over the same period in 2017

Generated positive cash flows despite significant investment in
infrastructure and human capital, with a net increase of $1.2 million
in cash and equivalents

“We’re happy with the business growth and progress so far in 2018, and
look forward to a successful close to this year as we seek to create the
world’s first viable Location of Things (LoT) ecosystem,” noted Arie
Trouw, co-founder and Chief Executive Officer at XY. “We remain focused
on building out the XYO Network, strengthening our industry
partnerships, and engaging even more with our beloved global XYO
community, as we plan for our first user conference, Spatial, next month
here in San Diego.”

Tickets for XYO Network's first cryptocurrency, geolocation and
blockchain event, Spatial, are on sale now at https://spatial.xyo.network.
Only 500 tickets are available – get yours today.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995. This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include all statements that are not
statements of historical fact contained in this press release, and may
be identified by words such as “anticipates,” “believes,” “seeks,”
“estimates,” “expects,” “intends,” “may,” “plans,” “potential,”
“predicts,” “projects,” “should,” “could,” “will,” “would,” or similar
expressions and the negatives of those expressions. In particular,
forward-looking statements contained in this press release relate to,
among other items, the company's future or assumed development of the
XYO Network and market adoption of that network. These statements
involve a high degree of risk and uncertainty, are predictions only and
actual events or results may differ materially from those projected in
such forward-looking statements. Factors that could cause or contribute
to differences include the uncertainty regarding viability and market
acceptance of the company’s products and services, the ability to
complete software development plans in a timely manner, changes in
relationships with third parties, product mix sold by the company and
other factors described in the company’s most recent periodic and other
filings with the Securities and Exchange Commission, including its
Offering Circular on Form 1-A, 2017 Annual Report on Form 1-K and
semi-annual reports on Form 1-SA. Investors are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date of this press release. The company undertakes no obligation
to update or review any forward-looking statement in this press release
because of new information, future events or other factors.

About XY – The Findables Company

Since 2012, XY has been on a mission to decentralize the world’s
location data. XY is the company’s consumer-facing brand of Bluetooth
and GPS findable devices. XY has become a leading technology in the
device tracking vertical and has introduced a real-world network of
Bluetooth and GPS/Cellular Beacons that interact every day in the real
world.

About XYO Network

XYO Network is an effort to create a vast, geospatial,
blockchain-powered location network currently under development with the
goal to provide accurate, certainty-driven location data on everything
from cars to smartphones. By combining location beacons with IoT and
mobile devices, the XYO Network ecosystem plans to deliver the verified
coordinates and data needed to execute smart contracts, run smart
cities, foster financial transactions, and power a legion of
location-centric applications. For more information, please visit https://xyo.network.